Upcoming Week: Impact of US Inflation and Retail Sales on Fed's Interest Rate Reduction Strategy

The US CPI Report might affect investor expectations regarding a potential Fed rate cut in May. UK economic indicators could empower the Bank of England's hawks. Economic indicators from Australia and Japan will shape RBA and BoJ policy intentions.  

Highlights

• The US CPI Report may influence investors' predictions regarding a potential Fed interest rate cut in May.
• Economic indicators in the UK might empower the Bank of England's more hawkish policymakers.
• Economic indicators from Australia and Japan will impact the policy intentions of the RBA and BoJ.  

US Dollar Focus:

Investor attention centers around consumer inflation expectations and the US CPI Report, potentially influencing buyer demand for the greenback. Jobless claims, retail sales, and producer price figures also contribute to market sentiment, while FOMC member speeches provide insight into economic outlook and Fed rate path.

Eurozone Outlook:

German and Eurozone economic sentiment numbers, GDP revisions, trade data, and inflation figures shape expectations for the Eurozone economy. ECB member commentary from Lagarde and others offers further insight into monetary policy decisions.

Pound Analysis:

UK labor market figures, inflation numbers, GDP data, and retail sales figures drive market sentiment around the Pound. Commentary from Bank of England officials, including Governor Bailey and Chief Economist Pill, provide additional guidance.

Loonie Assessment:

Housing starts and wholesale sales figures influence market sentiment for the Loonie, with attention also given to OPEC and IEA monthly reports for broader economic context.

Australian Dollar Review:

Consumer and business confidence, labor market data, and consumer inflation expectations impact buyer appetite for the Aussie dollar. RBA Board Member Kohler's speech provides additional insight into RBA's interest rate trajectory.

Kiwi Dollar Evaluation:

Business inflation expectations, electronic retail card spending, and Business PMI numbers influence buyer demand for the Kiwi dollar. RBNZ Governor Orr's commentary offers guidance on monetary policy.

Japanese Yen Outlook:

Producer price and machine tool orders data, Q4 GDP numbers, and industrial production figures shape investor demand for the Japanese Yen. Bank of Japan comments on monetary policy provide additional market direction.

China's Impact:

While no economic indicators are available due to the Chinese New Year holiday, reports on consumer spending and stimulus chatter may influence market risk sentiment.